If a binding price ceiling is in place and if the demand curve for the product shifts rightward,one consequence would be
A)the quantity exchanged would increase.
B)the quantity exchanged would remain constant.
C)the quantity exchanged would decrease.
D)an increase in the amount of excess supply.
E)a decrease in the amount of excess demand.

Question

Quizplus · Accepted Answer

A binding price ceiling creates a shortage, and if demand increases, the shortage worsens, keeping the quantity exchanged constant at the ceiling level.

If a Binding Price Ceiling Is in Place and If